Livestock livelihoods, Livestock and Poultry Sector Sustainability, Post-Covid-19 Measures

by-Dr. Tanveer Ahmad

Pakistan’s livestock sector has contributed 11.22% in the national GDP and showed a growth of 4% during 2018-19. The increase in imports volume and growth in livestock sector were attributed to growth in wholesale and retail sectors. In addition to foreign exchange earnings through export, this sector has also been providing 35-40% of the income to more than 8 million rural families. The poultry is the second largest industry of Pakistan with an investment of more than Rs. 700 billion (2018-19). This sector, directly or indirectly, is providing employment to more than 1.5 million people. Poultry sector has also shown 8-10% growth rate per annum during the past few years. At present, this sector utilizes over 190 billion rupees worth of agriculture produce and by-products in poultry feeds. It is worth mentioning that poultry industry is supplying more than 40% of the total meat consumed in the country. In short, both livestock and poultry sectors are bridging the gap through supplying high quality nutritious and proteinous food to the masses.

In the wake of

pandemic, people across the globe are facing a huge impact on their daily life. The impact as financial crisis is the biggest one not only for a daily wager but also for those running big enterprises. The indicators of Bulls Power and Bears Power are both showing down arrow trend. The present pandemic era is severely affecting both livestock & poultry sectors of the country. The containment measures, particularly halted transport badly affected the supply chain during initial period of lock down. However, later on during lock-down days the relaxation on movement of vehicles carrying agriculture goods/inputs eases the supply chain.

During early days of lock-down, the livestock and poultry farmers faced a lot of pressure from supply chain and market disruptions. Due to non-availability of cold storage and lack of cold chain facilities, the dairy farmers were not able to store milk for a long time. During this situation, the farmers were forced to either dispose-off extra milk at low prices or to waste it. The loss can be imagined as more than 95% of the total milk in country is sold (non-taxable) as fresh/loose milk. Likewise, sale of mutton and beef soared down but might not significantly affected farmer’s economic condition due to cushion of rearing these animals for few more days.

In case of poultry, a sharp decline in farm gate prices of live chicken was noted (Rs. 80-90 per kg against cost of production of Rs. 125 per kg). This was because of lockdown, containment measures and low consumption of finished broiler. The low prices set back the placement of day-old broiler chicks that resulted in turmoil at hatcheries, where price of day-old broiler chick prices dropped to Rs. 5 against its cost of production of Rs. 28-30. The ultimate outcome was stoppage of hatcheries operation and in some cases sale of breeder birds.

This devastating scenario requires financial support from the government in terms of rebate on taxes, withdrawal/abolish of duties, subsidies, delay in utility bills payments, cash support for labourer wages etc., and some relief has been (will be) given by the government to both livestock and poultry industries.

This is not “the all”, we have to consider for these sectors of the economy. The relief might be helpful for a push up start but would not heal the sector in real sense. The industry might be benefitted but farmers won’t be. The lesson learned from COVID-19 crisis should be considered to uplift these sectors by helping farmers and not only the industry. During the past few years the development in these sectors expelled out the small farmers from the queue. Therefore, in Post-Covid-19 era such policies or measures are required that may help in sustainable development of these sectors and during any crisis the government may not be awaited to provide safe exit or bail out packages. The following measures have been suggested for the wellbeing of farming community in particular and giving a boost to livestock and industry in general.

1. Production not Numbers

The data on milk available for human consumption (1990 to 2019) indicated about four times increase. Likewise, an increase in per capita milk has also been noted as 100 liter in 2017 against 70 liter in 1990. At the same time an increase in import of milk and milk products has also been observed. One may be shocked to know that Rs. 20 b was spent on the import of milk and milk products in 2017-18 as compared to Rs. 1.4 billion in 1990-91. Few year back, these surprising figures also attracted the attention of court of law. Being ranked in top 5 of milk producing countries, we are still importing, isn’t shocking? This is only due to poor production of native animals. In more than 50% of the cases about 3-4 Pakistani dairy animals milk yield is equal to one animal kept in developed countries. This further put an extra burden on animal feed resources and management practices, thus making dairying a less profitable and non-sustainable enterprise. The available data indicated that animals with an average minimum milk yield of 25 liter per day could be economical in future dairying. It is direly needed that Livestock Policy Punjab and Punjab Livestock Breeding Policy (2015) should be implemented in true letter and spirit. The genetic improvement of indigenous dairy animals in terms of per unit productivity can be made through provision of certified semen from quality animals. Though it is not easy for the small farmers to cull low producers, the idea is to have some exchange program and step by step replacement can be done through government interventions or farmer’s own cooperatives.

Another way to improve productivity is to adopt technology or high-tech equipment in farming operations like milking machines, sensors, mechanized feeding systems, fogging & showering system etc, in livestock sector. At present, hi-tech equipment are usually imported at large scale. The Covid-19 lesson is to get developed at home level. This would open avenues for agricultural engineering sector for local manufacturing of hi tech equipment. The establishment of farmer’s communities would ease farmers in purchasing such hi-tech equipment.

2. Farmer’s Communities/Cooperatives & E-Marketing

It is an old time saying that “When life gives you lemons, make lemonade”. This is the time to make lemonade. The containment measures and social distancing give us a lesson to establish direct links with consumers, rather than relying on middle parties. It could be difficult for a single farmer to do so. That’s why establishment of farmer’s cooperatives/communities/ associations at village/UC levels would be an option. These communities/cooperatives would be able to establish either their own networks with consumers or with government organizations. Further, using E-plat form (even by Android app) of marketing can be used to reach consumer in a safe way. The government can act as mediator between farmer’s communities and consumer through such App. This can help government to establish a traceable system of farm produce delivery. The consumer can have the benefit of safe and healthy produce at its door step without being adulterated by the middle man. The Idara-e-Kissan cooperative is an old example that can be revived with new ideas. The universities can play a great role through farmer’s trainings & networking and development of E-marketing channels. The universities can also provide produce testing facilities and even go for co-branding the farmer’s produce. Under public – private partnership, the universities might be a good sale point of farmer’s produce.

3. Produce and Off-take Database

The real time data of COVID-19 cases is available 24 hr to everyone. However, such live E-data of farm produce, ever shrinking feed resources, produce off-take etc., is lacking in the country. An E-management system is a good option that can be linked with other E-agriculture services. These data-bases would help all around the industry to make decision about local purchase/import of stocks well in time.

4. Over and under production management

Over-production has long been affecting poultry profitability. The state driven quota system at some administrative units (like tehsil/district) for dairy and poultry farm produce and off-take agreements would be another option to manage prices and sustain production. These measures would enable farmer’s to be in line and build up their confidence in farming. Though living in an era of free trade, quota system might be difficult to adopt. However, for the sake of opening export options, price sustainability, and avoiding market crash it could be a good option.

These few suggestions would definitely have a positive impact on sustainable and manageable livestock and poultry production in the country, if adopted as a starting point. However, a comprehensive post-covid-19 plan of action can be framed out through consultative meetings/workshops with all stakeholder of these sectors.

The author can be reached at. Chairman, Department of Livestock Production and Management, PMAS-Arid Agriculture University, Murree Road, 46300, RAWALPINDI, PAKISTAN. E.mail. tanveer.ahmad@uaar.edu.pk

Published as:
Ahmad, T. 2020. Livestock Livelihoods. The News, Magazine Money Matters on 18-5-2020. Accessed at. https://www.thenews.com.pk/magazine/money-matters/660124-livestock-livelihoods?fbclid=IwAR2mORCwjP4UzuDk_GRd1PdbQYePc__679oLCs1r8MPLctgUPWi8t3NC2pk